RR Donnelley Agrees To Acquire Cardinal Brands, Inc.
Press release from the issuing company
CHICAGO - Oct. 16, 2007 - R.R. Donnelley & Sons Company announced today that it has signed a definitive agreement to acquire Cardinal Brands, Inc., a privately-owned designer, developer and manufacturer of document related business, consumer and hobby products, for a purchase price of $130 million before reduction for repayment of indebtedness, retirement of preferred stock and other items. The all cash deal, which is subject to customary closing conditions, including regulatory approval, is expected to close in the fourth quarter of 2007, and to be accretive to RR Donnelley's earnings within the first twelve months. Cardinal Brands is owned by St. Louis based private equity firm Westgate Group, LLC and the management of Cardinal Brands. Headquartered in Lawrence, Kansas, Cardinal Brands has manufacturing operations in the United States, Mexico and the United Kingdom. Its well-known brands include Adams business forms, Globe-Weis document organization and storage products, Cardinal ring binders and Generations creative albums, embellishments and paper products.
"Cardinal Brands is an exceptional fit with RR Donnelley's office and consumer products offering," said Thomas J. Quinlan III, RR Donnelley's President and Chief Executive Officer. "Their well known brands complement our popular TOPS office products. We expect to realize immediate selling, manufacturing, distribution, administrative and other synergies as we take this expanded line of respected brands to our combined base of multi-channel retailers, wholesalers, contract stationers and dealers."
John Paloian, RR Donnelley's Chief Operating Officer added, "We are delighted to respond to our customers' requests that we support their merchandising initiatives by broadening our offering. Cardinal Brands will tuck neatly into our branded products operations and our global manufacturing capabilities are ideal to support growth opportunities afforded by this combination."
Cardinal Brands has distribution centers in the United States, Canada, Mexico and the United Kingdom.
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